Hawe v. Director

DeALMEIDA, P.J.T.C.

The question before the court is what portion of distributions from a fixed-term, variable rate annuity contract are included in the annual income of a taxpayer for purposes of determining eligibility for a homestead property tax reimbursement. For the reasons explained more fully below, the court concludes that “annual income” as the term is used in N.J.S.A. 54:4-8.67 does not include distributions from a fixed-term, variable rate annuity contract that represent a return to the taxpayer of the funds used to purchase the annuity. Because the Director, Division of Taxation…